Finextra: PSD2’s narrow focus limiting the potential of Open Banking
A study performed by Fingleton provides insight in some shortcomings of PSD2, when it comes to achieving Open Banking. According to Fingleton, merchants lack a refund functionality and customers are unable to pre-approve payments to merchants. This is challenging for merchants since these are critical features for them.
Furthermore, Fingleton elaborates on the need to extend Open Banking to a wider range of products such as cash, savings accounts, mortgages, pensions and insurance, since this will improve competition and lead to better consumer outcomes.